Tag: municipal utility

[Editor’s note: This story will also appear in the spring issue of WAPA’s Customer Circuit]

Like any private business, WAPA exists to serve its customers. Administrator and CEO Mark A. Gabriel has made a special point of meeting customers since he joined WAPA in 2013. In fact, he says it is one of favorite parts of the job. “Powerful partnerships drive our customer service efforts,” Gabriel explained. “When we listen to customers’ needs and concerns, we learn how we can better serve them. As our industry is evolving so quickly, this is one of the most important things we can do.”

Administrator Mark Gabriel addresses customers at the annual meeting of Missouri River Energy Services. (Photo by Missouri River Energy Services)

Relationships matter
As it turns out, the customers like it, too. “Mark is the exception to the rule of the private sector pulling the best and the brightest away,” said Brad Lawrence, utilities director for the city of Madison, South Dakota. Lawrence first met Gabriel at the winter customer meeting for Heartland Consumer Power District. “He clearly understood the rank and file, and he wanted to hear from ground troops,” added Lawrence, who has a military background. “It’s fairly rare that people at the bottom get a chance to explain things to people at the top.”

Making that effort to get to know customers face to face is an important piece of relationship building that often gets overlooked in today’s business environment. “It shows respect and our customers respond to that,” explained Tracy Thorne, a public utilities specialist in WAPA’s Upper Great Plains Huron office. Thorne has helped to coordinate Gabriel’s attendance at several events in the region and frequently accompanies him.

Answering questions, honoring innovation
Many different kinds of events give Gabriel the opportunity to visit “the field.” It may be a member meeting being held by one of our generation and transmission customers like the one at Heartland, or the gathering of an industry group.

Last summer, Gabriel was a guest at the annual picnic of the Northwest Iowa Municipal Electric Cooperative Association where five WAPA customers were in attendance. Members were concerned about impending regulations before the Federal Energy Regulatory Commission and Gabriel wanted to discuss the issues. More importantly, he listened. “He was sympathetic to our concerns,” said Eric Stoll, general manager of Milford Municipal Utilities in Iowa. “Gabriel didn’t dismiss us because we are a small customer. That really means a lot to us. We didn’t feel overlooked at all.”

Stoll recalled buzzing around town in a GEM electric vehicle with Gabriel. “At one point, we pulled up to a curb and someone thought we were the meter maid,” he laughed.

One trip to Nebraska in 2017 was specifically to honor South Sioux City for delivering impressive innovation along with affordable, reliable power. Gabriel presented the municipal utility with WAPA’s Administrator’s Award. “The vision our customers show never fails to impress me and that is especially true of smaller utilities like South Sioux City,” Gabriel said. “It is a pleasure to meet the people who are doing this work and to bring attention to their accomplishments.”

No occasion too big, small for visit
The spring has been an active time for meeting with customers. At the end of April, Gabriel traveled to Nebraska to speak at the Big 10 and Friends Utility Conference in Omaha. The meeting brings together facility and energy managers from Big 10 and other schools and utility professionals to discuss the business of campus utility production, distribution, metering and efficiency. Gabriel gave the keynote address titled “Radical thoughts: Providing value amid a changing energy landscape” to an audience of about 260 individuals.

Thorne noted that the presentation was very well received. “Afterward, I overheard attendees comment about how much they enjoyed Mark’s presentation—and they didn’t know I was from WAPA!” he added. “People had a lot of good questions for Mark and he had the answers. I think if it had been a smaller crowd, the discussion could have gone on for hours.”

While in Nebraska, Gabriel also attended meetings with several municipal utilities in Randolph and Fremont, and met with Nebraska Public Power District in Columbus. Jody Sundsted, senior vice president and UGP regional manager, joined Gabriel for those meetings. Utility staff and consumers in small towns are engaged with the same issues as their counterparts in more urban areas, Sundsted noted. “People had a lot of questions about the Southwest Power Pool, behind-the-meter generation, battery storage,” he said. “They really appreciate getting answers from the administrator himself.”

WAPA’s experience with the Southwest Power Pool was also a topic of interest at Missouri River Energy Services’ annual meeting in Sioux Falls, South Dakota, May 10. Gabriel’s presentation highlighted some of the challenges that WAPA and all utilities will be facing in the future, including societal changes, economic challenges and security challenges. He assured the group of continuing value and business excellence through WAPA’s focus on direction, people and performance.

“The members of MRES look forward to the update that WAPA provides each year at the MRES Annual Meeting,” said Joni Livingston, MRES director of member services and communications. “With 59 of the 61 MRES members having WAPA allocations, they are always anxious to hear about WAPA’s rates for the Pick-Sloan region, particularly since those rates have decreased in 2017 and 2018.”

Sundsted observed that Gabriel meeting with customers benefits WAPA, too. “Customers know our brand, but it helps them to put a face with the logo, to see that WAPA is people in the utility business just like them,” he said.

Sometimes, you just don’t know what people want until you ask them, as the municipal utilities board of directors in Fremont, Nebraska, learned when they set out to diversify their municipal power portfolio.

The 1.5-megawatt Fremont Community Solar Farm unleashed a pent-up demand for renewable energy options, selling out subscriptions in just seven weeks. (Photo by Fremont Utilities)

City Administrator Brian Newton recalled that one of his first projects after joining the city staff three years ago was to work with the board of directors on a strategic plan for their power supply. At the time, the city of around 27,000 was powered mainly by coal and natural gas. “The board decided it would be a good idea to investigate adding other resources,” said Newton.

Consulting experts, customers
His initial reaction was that the customers would not be interested in solar energy. After all, Fremont residents enjoy a low residential rate of just 8 cents per kWh, and no one had installed a privately owned solar system.

That was a smart move, because SEPA research has shown that a successful community solar project starts with knowing your audience. The survey SEPA conducted was an eye-opener for Newton. “More than 70 percent said they were interested in solar power, and some said they’d pay $10 more per month for it, which I doubted,” he said.

Just to make sure the survey results were on track, Newton held numerous public meetings to explain community solar to customers and get feedback from them. More than 500 people signed up to receive information about solar energy and many were adamant about joining the community affair. They not only wanted the solar power to be sold in Fremont, they also wanted it built by local developers, financed by local money and under community control.

Designed to sell
To make participation easy, Fremont put together a unique package of options. Customers can choose between purchasing panels, buying one or more solar energy shares and subscribing to a combination of panels and shares.

Solar subscriptions can cover up to 80 percent of residential customers’ annual kilowatt-hour consumption and 50 percent for commercial customers. One panel generates an average of 43 kWh monthly, while one solar energy share represents 150 kWh monthly. Customers who purchase panels are able to take advantage of the Federal Solar Investment Tax Credit, making participation even more attractive.

If the utility board of directors had any remaining doubts about customers’ interest in solar, those were laid to rest when the 1.5-megawatt solar farm sold out in seven weeks. Fremont promoted the project with customer meetings, emails and bill stuffers, the usual avenues for getting the word out. Newton noted that the 1.2-MW second phase of the solar farm is selling out by word of mouth alone.

Newton may have been surprised by customers’ eagerness to invest in renewables, but he told SEPA the rural community’s latent environmentalism shouldn’t be surprising. The community has always been firmly rooted to the land because agriculture is central to the local economy, he said. “Damaging the land or air isn’t an abstract idea. Fremonters can see the impact of environmental degradation on their livelihoods.”

Or, as one resident observed, Fremont’s support for solar power is not a surprise, as much as it is the natural progression of a long history of civic involvement in environmental stewardship.

In a state that many consider to be synonymous with energy innovation, the City of Colton Electric Utility must balance two competing challenges that will sound all too familiar to rural power providers across the nation. On one hand, San Bernardino County, California’s oldest electric utility has a fierce summer peak; on the other, a significant population of low-income customers struggles with each month’s electric bill. In true public power spirit, Colton Electric’s “Spring into Summer” campaign seeks to manage its peak by putting the needs of its ratepayers first.

The campaign, which runs from March 20 to June 20, encourages customers to upgrade certain items in their homes to energy-efficient products prior to the start of summer. The utility notifies customers about the program on their utility bills, Facebook, Instagram and the electric website. Flyers are also placed in city hall, the electric office and community centers.

Artwork by City of Colton Electric Utility

Customers can take advantage of increased rebates for box fans, ceiling fans, swamp coolers, room air-conditioning units and air-conditioning system tune-ups, as well as whole-house systems. “We want to give all of our customers a chance to save,” explained Environmental Conservation Supervisor, Jessica Sutorus.

Utility programs for saving energy often focus on big measures like entire home cooling system replacement because those retrofits provide the best results, for both the customer and the power provider. However, low-income customers can rarely afford major home improvements, even though they need the savings as much as, or more than customers in other demographics.

Different demographic, different goalsEven so, the “Spring into Summer” promotion is as much about customer outreach as it is about energy efficiency. “You have different expectations than when you are marketing to more affluent customers,” Sutorus acknowledged.

In that respect, “Spring into Summer” has been successful, increasing participation in the cooling rebate program by 40 customers annually, a 43 percent increase in participation. “Obviously those aren’t huge numbers, but we have only 16,000 residential customers and most of the participants are investing in the smaller-ticket items,” said Sutorus.

So while the savings to the customers may be meaningful, the program has not made much of a dent in Colton Electric’s summer load. Many Colton families pass their homes from generation to generation and don’t have the resources to make the kind of deep retrofits that are useful for load shaping. A lot of those houses are several decades old and still have the original windows, Sutorus noted. “Our residential programs are about serving the community,” she explained. “We have other plans to meet state goals for energy savings.”

Part of bigger pictureColton has recently begun to install smart thermostats throughout city facilities, and to replace old air-conditioning systems with Ice Bear high-efficiency cooling equipment. The measures are part of the Climate Action Plan the city adopted in 2015 to reduce greenhouse gas emissions.

This is where California’s progressive approach to climate change is helpful to the small “Inland Empire” city. The state’s Title 24 Building Standards Code requires developers to build housing that is highly efficient and solar- and electric vehicle-ready. This is good news for a city that is finally beginning to feel the effects of the economic recovery. “We are expecting new residential development, but industry is our fastest growing load,” Sutorus observed.

Colton Electric offers a menu of commercial customer rebates, including automated online energy monitoring analysis, lighting rebates and time-of-use rates. Support for commercial customers can help grow local industry and bring more jobs to the area. More jobs mean a stronger economy, and that, too, will be good for ratepayers.

WAPA Administrator Mark Gabriel will present WAPA’s prestigious Administrator’s Award to South Sioux City, Nebraska, Oct. 18 at the Delta Hotels in South Sioux City. The presentation is part of 2017 National Bioenergy Day, an event that will be attended by local, state and federal officials and high-ranking industry representatives. Gabriel will also deliver the keynote address, “The Importance of Renewable Energy Diversification,” at Bioenergy Day. The event will also include a tour of the new Green Star Energygasifier power plant.

Despite its small size—a population just over 13,000—South Sioux City has consistently delivered innovation along with affordable, reliable power year after year, warranting the honor the award confers on a WAPA customer. But these accomplishments feel almost secondary to the vision that made them happen. South Sioux City is well known among its peers and many other WAPA customers for being exceptionally forward thinking and tenacious at finding and leveraging win-win partnerships.

Leading in renewablesSouth Sioux City is pursuing clean, low-carbon electricity with a unique mix of projects.

A 2.3-megawatt (MW) photovoltaic array is only the latest example of the town’s efforts to reduce its carbon footprint. The 21-acre solar park began operation in January and generates the equivalent of 5 percent of the city’s total electricity needs. South Sioux City also recently selected a firm to build 15 MW of new wind power and signed an agreement to begin receiving generation from it in 2018. Both the wind and the solar projects are public-private partnerships.

South Sioux City’s Solar Park: 2.3-megawatt array (1,200 panels) located on a 21-acre solar park south of the city, alongside C Avenue. The array generates enough energy to provide 5 percent of South Sioux City’s electrical needs. (Photo by Nebraskans for Solar)

In a region where agriculture and related businesses are the leading industries, biomass represents an energy resource that South Sioux City has captured through different projects. Three major food processing plants divert animal, grain and other wastes to an anaerobic digester that extracts methane from the stream and feeds it into the natural gas pipeline. The nearby Siouxland Ethanol Plantdisplaces up to 9 percent of its natural gas needs for ethanol production with landfill gas from the LP Gill landfill.

The Scenic Park campground was the site of a pilot program in 2015, using a gasifier woody biomass system to generate 50 kilowatts of electricity from wood waste from storm damage. The unit was so successful that South Sioux City entered into an agreement with Green Star Energy to build a 3-MW gasifier. The new power plant will take city and industrial waste wood and dead and dying trees destined for the landfill and convert it into electricity.

Another potential project with Green Star Energy shows that South Sioux City has not lost sight of the tried-and-true renewable resources. The partners are seeking funding to build an innovative hydropower generator along the Missouri River that flows through the south end of the city. The run-of-river turbine design resembles a boat dock, would be safe for fish and aquatic animals and could produce enough electricity to save South Sioux City about $450 each day.

Conserve, reduce, manageEnergy innovation in South Sioux City is not limited to developing new resources. Planning and wise use are just as important to creating a cleaner, sustainable energy supply.

When peak demand needs to be curtailed, the city takes a two-pronged approach. First, a major industrial load voluntarily ramps down its demand by 11 percent to save not only its own energy costs but the energy costs for the city as a whole. On the residential side, the municipal utility has placed demand meters into service to control peak demand from air conditioner use. Both strategies have helped the community to contain electric costs.

South Sioux City has performed energy audits on all city buildings and facilities, and made improvements to systems such as lighting and heating and cooling, to save energy. (Photo by Ammodramus)

The municipal utility has performed energy audits on all city buildings and facilities to identify energy-saving opportunities. Improvements included adding variable speed drives, converting street and signal lighting to LED and installing LED office lighting. Energy-efficient heating and cooling measures and practices have also been implemented in city buildings.

To address the need for backup support and electric demand relief during peak times, the city is designing a 5-MW, state-of-the-art natural gas-powered generating station. Excess generation from the unit will be offered to the Southwest Power Poolmarkets.

Practicing stewardshipSouth Sioux City was the first city in Nebraska to implement a paperless city council. In addition to reducing environmental impacts, the approach simplifies the archiving of council activities and makes it easier for the public to access more information. A voice-activated council chamber video recording system allows citizens to access live and archived meetings.

Tree health and sustainability are important to South Sioux City, which has qualified for the Arbor Day Foundation’sTree City USA designation for 25 years and earned the Growth Award for 10 years. For the past eight years, the city has planted one new tree for every 30 residents.

Residents enjoy the city’s two community gardens and the more than 200 fruit trees the city planted in 2014. The orchard is part of a facility designed in partnership with the University of Nebraska – Lincoln to provide storage and opportunities for youth outdoor learning activities. The new building is the first compressed laminated timber structure in Nebraska. Ash tree planks salvaged from emerald ash borer kill and milled by the Nebraska Forest Service side the building. The project received the 2017 Community Enhancement Award from the Arbor Day Foundation.

South Sioux City’s extensive trail network earned the first “Bicycle Friendly Community Award” in Nebraska in 2006, and hosts many rides, runs and other events throughout the year. (Photo by South Sioux City)

Quality of life is part of environmental health too, and South Sioux City actively promotes healthy lifestyles. The city’s extensive network of developed trails earned the first “Bicycle Friendly Community Award” in Nebraska in 2006. The trail system connects to 60 miles of trails in four cities and three states, and hosts many rides, runs and other events throughout the year.

Partners make it happenInnovation doesn’t occur in a vacuum and partnership is as critical to South Sioux City’s efforts as vision is. City Administrator Lance Hedquist acknowledges that the city’s success with energy efficiency and renewable energy projects results from the support and trust of the mayor, council and staff who share his passion to make the city a great place to live and work.

South Sioux City’s collective approach to innovation, partnerships, governance and trust would be impressive in a city many times its size. In a small municipality, it deserves recognition: WAPA is proud to honor South Sioux City with the Administrator’s Award.

Moorhead Public Service is receiving well-earned recognition for giving its customers the choices they need to save energy, money and the environment. Mark Gabriel will present WAPA’s Administrator Award to the municipal power provider, Oct. 11, at Moorhead City Hall in Minnesota.

Moorhead Public Service General Manager Bill Schwandt talks to a local reporter at the 2015 ribbon-cutting ceremony for Capture The Sun. The municipal power provider is making more news this year by unveiling the second phase of its popular community solar program and winning WAPA’s Administrator’s Award. (Photo by Moorhead Public Service)

One of the things we at WAPA most enjoy about our work is the opportunity to recognize our customers for their commitment to serving the community and using energy wisely. And MPS, with 18,000 meters, has much to celebrate, from successful development of utility-owned renewables to a broad range of customer energy-efficiency programs. “Moorhead Public Service proves that a utility of any size can forge a powerful partnership with the community by being responsive to its customers’ needs,” said WAPA Administrator and CEO Mark A. Gabriel. “The Administrator’s Award honors that dedication to service and best business practices.”

Upper Great Plains Customer Service Representative Jim Bach, who has worked with MPS for years, added, “The great thing about MPS is that it has been focused on customer service, environmental stewardship and supporting the community long before these ideas became marketing strategies. They just see it as how you do business,” he added.

MPS General Manager Bill Schwandt, who will be accepting the award, confirmed Bach’s observation. “To run a business successfully—especially one that the community relies on—you have to put the customer first,” he said. “Recognition like the Administrator’s Award is just evidence that we are on the right track.”

“Capturing” clean energyFor example, MPS launched its customer-driven Capture The Wind program years before the industry was talking about community renewable projects. More than 400 customers signed up to support the construction of Zephyr, a 750-kilowatt wind turbine, in 1999. The program was so successful that MPS installed a second turbine, Freedom, in 2001, with the support of another 400 members. Capture The Wind has effectively prevented the emission of more than 16 million pounds of greenhouse gases, and boasts a 7-percent customer participation rate, one of the highest participation rates per capita in the nation.

Building wind power in the state that now ranks seventh in the nation for installed capacity makes sense, but solar power is a tougher sell in northern states. To alleviate concerns about the viability of solar in the local climate, MPS built a solar demonstration project in 2011.

A utility survey and public meetings followed the successful demonstration, all indicating that customers were interested in solar power in spite of the fact that many were unable to install arrays on their homes. A community solar farm offered not only a tailor-made solution, but one that felt familiar to customers as well. In 2015, MPS built the first phase of its Capture The Sun community solar garden project. The demand for customers wanting to purchase solar panels was so strong that MPS expanded Capture The Sun in 2016 and is looking to expand again in 2017.

American Public Power Association has given both the wind and solar projects its Energy Innovator Award. Under the umbrella name, Capture The Energy, the programs will continue to meet customer demand for a clean energy option.

Putting efficiency firstAs any good member services representative will attest, customers benefit as much—if not more—from energy-efficiency measures as they do from renewables projects, and MPS customers have plenty to choose from. As a member utility of Missouri River Energy Services, MPS offers the Bright Energy Solutions program, a portfolio of energy-efficiency incentives to help customers reduce their electric costs and operate more efficiently.

Customers can find rebate forms on the website for lighting, heating, ventilating, air conditioning, motors, pumps, variable frequency drives and more. Both commercial and residential customers can subscribe to the monthly Bright Ideas newsletter. The e-newsletter features the latest in energy technologies and energy-saving tips, along with free features and tools connected to Bright Energy program to help customers reduce energy use at home and work.

Business and commercial customers can also sign up for free technical assistance through Questline. This free service provides customers with resources such as an online library of technical business and engineering documents, an online portal to targeted research tools and an “Ask an Expert” hotline, at no cost.

Saving energy in businessMPS recently awarded more than $44,000 in rebate checks for energy conservation to American Crystal Sugar Company as part of the Bright Energy Solutions program. Earlier this year, in conjunction with MPS’ Bright Energy Solutions program, American Crystal Sugar Company worked with the program to upgrade several of its process motors with variable frequency drives. This upgrade project will save the factory an estimated 863,081 kilowatt-hours per year.

Good business also means investing in your own infrastructure, which MPS did this year by building a new high-service pumping station. The purpose of the project was to replace outdated 1950s pumps and fixed-speed motors with new variable-speed pumps and to update backup generation for the pumps and an adjacent facility. Installing new variable-frequency drive-powered pumps reduced the station’s energy use and maintenance costs and improved the system operation.

The capital project also included a 1.3‑megawatt natural gas generator with an automatic switchover to provide emergency backup power supply for the pumping station. The generator also enables peak-shaving during peak-load situations, so MPS can use it for electrical containment. The generator and associated switchgear cost $2,200,000, but the utility’s savings on purchased power costs bring the payback for the project to around 17 years. The Minnesota Public Facilities Authority and Drinking Water Revolving Fund are providing financing for the pumping station upgrade.

Partnering with state agencies, energy services providers and, most of all, customers has been the secret of Moorhead Public Service’s ability to deliver reliable, affordable power and innovation. That neighborly attitude has given the Minnesota utility a strong base on which to build a successful future. WAPA is proud to honor that spirit with the Administrator’s Award.

The utility industry is going through a period of intense change—some would say upheaval—that makes planning more important than ever and well worth the time involved. Just ask Jim Steffens of the City of Banning, California, Electric Utility. “I like that the integrated resource plan (IRP) touches on so many areas of the utility,” said the Electric Utility Power Resources and Revenue Administrator. “The process made us think about how all the different parts, like the distribution system, play into delivering electricity.”

California’s Public Benefits Charge of 2.85 percent of retail sales make the municipal utility eligible to file a minimum investment report instead of an IRP. Yet the city opted to do the full IRP process for Banning’s 2015 report. “Historically, our five-year IRPs were very simple and didn’t change much because not much had changed since we last did a full IRP,” explained Steffens. “Then over the last few years, due to legislative and regulatory mandates, everything started changing fast and we really needed the comprehensive picture you get from an IRP.”

Times a-changin’Banning Electric gets the majority of its electricity supply through contracts with the Southern California Public Power Authority for coal, nuclear and hydropower. Because California law does not permit electric utilities to invest in coal-fired power, SCPPA will be divesting its part ownership of the San Juan Unit 3 coal plant in New Mexico in 2017. “So there goes 20 megawatts (MW) of baseload power, which is a big deal for Banning,” said Steffen, adding, “Yes, we are a tiny utility.”

Some of that power will be replaced by 9.6 MW of landfill gas power from the Puente Hills facility built by the Sanitation Districts of Los Angeles County. A utility-scale solar farm on the border of Kern and Los Angeles counties will provide another 8 MW. In other words, Banning is looking down the road at a whole new resource mix by 2018.

Being located in a state on the cutting edge of transforming the power supply means that the city of 30,000 will have to look for ways to innovate, and that is where planning comes in. California’s carbon cap-and-trade program gives utilities allowances for compliance that can be auctioned. The IRP helped Steffens figure out how much of the auction proceeds Banning can bank to help cover the cost of prematurely getting rid of the San Juan plant.

Steffens also used the plan to track the city’s progress meeting the state’s aggressive renewable portfolio standard. “It showed that we may come up slightly short in one particular year, so we can start planning for that year now,” he said. “However, we are very proud of the fact that the utility power supply will be more than 70 percent renewable by 2018.”

Evolving loadLike the power supply, Banning’s load is also starting to change after decades of relative stability. Electricity demand dropped during the recession and has not yet fully recovered, but signs point in different directions.

In an economically challenged area, Banning residents have not adopted rooftop solar systems or electric vehicles (EVs) at the same rate as in other parts of the state. But both of these technologies are becoming more common and more affordable, so the city has to be ready. EVs could bring load growth, even as distributed generation reduces the utility’s load. Such uncertainties make the annual IRP progress report that much more important.

The Banning police department carports are topped with a solar array. Although solar power is still a relatively small piece of the city’s power supply, Banning will be adding more in the near future. (Photo by City of Banning, California)

Population growth is putting more pressure on Banning too, with two large housing developments scheduled to start construction soon after 2020. “The past 10 years have been a real lesson in how quickly things we used to take for granted can change,” observed Steffens.

Plan points wayEfficiency is also included in Banning’s plan for the future. “A good portion of our Public Benefits funding covers the low-income Banning Electric Alternative Rate, or BEAR, but we also fund rebates,” noted Steffens. “Efficiency programs are an important part of customer service.”

Residential and commercial rebates are available for Energy Star appliances, air conditioner replacements, shade trees, weatherization, low-flush toilets, new construction, renewable systems and refrigerator and freezer recycling. The utility just launched a new commercial efficiency plan, the Business Energy Efficiency Fund, or “The BEEF, developed specifically for our small and mid-sized business community,” said Steffens.

Banning Electric created its new commercial efficiency plan, the Business Energy Efficiency Fund, the BEEF, specifically to help small and mid-sized businesses like Star Auto Parts. (Photo by City of Banning, California)

Most of the businesses in Banning are small mom-and-pop operations that often don’t have extra capital for upgrades but could benefit greatly from lower utility bills.

Participants receive a free walk-through energy assessment to identify potential energy-saving upgrades to lighting, heating and cooling, water heating, motors and refrigeration. The businesses can then select the retrofit that best meets their needs and the utility pays up to $2,750 for the project.

When asked what percentage of Banning customers were commercial, Steffens checked his IRP. “Twenty-seven percent,” he replied. “The great thing about the IRP is that I have the answer to questions like that right in front of me.”

Steffens pointed out that the benefits of the IRP go well beyond just getting information in one place. “When things are changing as much as they are for Banning, you need to see the big picture and dive deep into the details,” he said. “We didn’t have to do the full IRP, but it is a great exercise to show you where you are going.”

Development of a renewable energy project is governed by circumstances specific to that site, and the reasons for building the generation are often just as unique. For the little town of Neligh(pop. 1,600) in northeastern Nebraska, renewable energy offered a creative path to avoiding high peak demand charges.

A front south view of the Neligh Electric Generation Plant. (Photo by Roxanne McNally)

The city installed a 6.5 megawatt bio-diesel electric generation plant—one of a kind in the state—in 2012. The generation capacity allows Neligh to purchase economical electricity from outside entities while using the bio-diesel generators for peak electric demand and emergencies. Self-generation saves the city a wholesale electricity supplier demand charge.

“The bio-diesel generation has been a great savings for our community, and a safety net for Neligh and the surrounding communities,” commented former Mayor Jeri Anderson, who left office at the end of 2014. “Neligh can generate to help the capacity loads for other communities in emergency situations, and it is a great backup energy resource for us.”

Searching for solutionsFor large electricity customers, demand charges—that fee your power provider adds to your bill for your highest energy use—can be notoriously tricky to control. Efficiency reduces the overall amount of energy a facility or community uses. However, an unexpected event like a large manufacturing order or extreme weather can cause the need for electricity to spike, and that need must be met. For years, Neligh bought expensive wholesale power to meet peak demand and emergencies, resulting in monthly supplier demand charges of around $50,000.

Besides reducing demand charges, the city also wanted to purchase low-cost “economy energy” from the Municipal Energy Agency of Nebraska (MEAN). Economy energy is the standby reserves that large generators always have on hand to meet sudden demand. To offset the cost of producing this energy, the generators sell it to various buyers on an hourly or day-by-day basis. Under the state Power Review Board (PRB) rules, a city may buy economy energy if it owns generation capable of producing 115 percent of its demand. Clearly, it was not difficult for Neligh to make a business case for building its own power plant.

Answer is greenThe problem with that solution was that a private investor cannot own a generator in the all-public power state of Nebraska. Also, the PRB must approve all new generation, which places the burden on cities and villages to prove a verifiable need for additional generation. That is a difficult hurdle to clear in a state that has plenty of generation capacity.

A potential loop-hole opened several years ago, when a hog farmer installed a methane digester generator and petitioned the PRB to sell his excess power to Nebraska Public Power District . The board determined that since this energy was renewable—“green”—it was regulated by FERC, so the PRB had no authority to rule either way on the sale. “When I learned of the decision, I began researching green energy systems that Neligh could install,” said City Attorney Jim McNally.

A bio-diesel generator of less than 40 megawatts met the PRB’s criteria, and Neligh was issued a permit to build. Mayor Joe Hartz attributed the outcome to a strong relationship with NPPD and to cooperation between Neligh’s municipal utility, NPPD and MEAN. “That allowed us to provide the best of all worlds for our customers,” he said.

Logistically, economically feasibleThe installation itself was a straightforward project, since the generators are conventional diesel equipment. It is the fuel—100-percent soy oil in Neligh, rather than fossil fuel—that qualifies the project as renewable. Only the rubber hoses had to be changed out on the four used Caterpillar generator sets. Because the fuel tends to jell when cold, the plant is housed in a heated building.

The city paid a little more than $3 million for the generators and some lightly used controls, financing the purchase on a 15-year bond. The power plant now qualifies Neligh to purchase economy energy from MEAN, but more importantly, having its own power supply has saved the city from paying demand charges. “In place of the $50,000-per-month demand charge, we have a monthly bond payment of about $17,000 for the equipment,” McNally explained. “The city nets around $30,000.00 a month in savings, or $300,000 annually after the bond payment. That is significant for a city of 1,600.”

The attorney added that Neligh’s new access to the economy energy market is what makes the renewable aspect of the project economically viable. “Wholesale power in Nebraska is less expensive than self-generation with either diesel or biodiesel,” McNally acknowledged.

Potential environmental regulations could change the equation, but McNally believes the bio-diesel generators will continue to be a net winner for the city budget. The little city of Neligh should not have any problems handling whatever the future holds. Volatile prices and new rules are no match for ingenuity and savvy planning.

This fully integrated smart solar streetlight, one of nine along El Camino Real in Palo Alto, California, produces energy equivalent to power two streetlights. The city is asking residents to give their opinions on the project in an online survey.

El Camino Real, a historic road that runs nearly the full length of California’s coastline, is making history again for its role in a six-month pilot project being conducted by the City of Palo Alto Utilities (CPAU). In partnership with energy technology provider Petra Systems, CPAU recently installed a string of nine smart solar streetlights along “The Royal Road.”

The installation is testing the potential to generate renewable energy on streetlight poles. Solar photovoltaic, or PV, modules placed high on the poles capture the sun’s energy and send it to the city’s electric grid. The technology could help transform ordinary streetlights into a network of distributed solar power generating assets.

Taking community’s pulseThe PV-fitted streetlights are located along a well-trafficked mile of El Camino Real. Interpretive signs in the area educate passers-by about the technology. “The pilot project area runs right by Stanford University, as well as soccer fields and parks, so residents will see what we are doing and be able to form an opinion about it,” noted CPAU Communications Manager Catherine Elvert. “We are encouraging community members to provide feedback through an online survey.”

The survey asks questions about residents’ support for CPAU increasing the use of solar power, and allows them to express concerns about aesthetics, light quality and other issues. “The customer response to these modules can help us gauge how aggressively to pursue this type of local generation,” Elvert added.

CPAU is engaged in several local solar initiatives as part of its ongoing commitment to invest in clean energy resources.

Innovating through partnershipThrough its Program for Emerging Technologies, the municipal utility is able to “test drive” systems that may improve operations, create jobs and boost the sustainability of CPAU’s generation portfolio. Launched in 2012, the program seeks out and nurtures creative products and services that manage and better use electricity, gas, water and fiber optic services.

Partnering with high-tech companies keeps the cost of innovation down. The El Camino Solar Test project will increase Palo Alto’s renewable energy production at no cost to the city. Petra Systems offered CPAU the solar modules to evaluate their performance over the six-month pilot duration. The nine units are estimated to have a total nameplate capacity of about 2.25 kilowatts, with each solar module expected to produce 374 kilowatt-hours per year. That electricity is enough to power the equivalent of two streetlights, making the LED, or light-emitting diode, streetlights net producers of electricity.

Improving service, lowering costsProject Manager Lindsay Joye pointed out that generation is just a small part of smart solar technology performance. “The technology goes well beyond self-powering to give the city greater control of its streetlight assets,” she said.

The modules are equipped with an LED light controller that allows the city to remotely turn streetlights on or off. The brightness of individual lights or groups of lights can be adjusted to accommodate the traffic levels in different neighborhoods, as well. On a citywide scale, the dimming function can provide even deeper energy savings from the already-efficient LED lamps, Joye noted.

The system offers additional features that can streamline maintenance and enhance public safety. The controller can flicker specific lights to help direct emergency response personnel when needed, and can notify the city immediately of a malfunctioning light, including the failure type and exact location. Elvert said, “If the city decides to expand the project, high-traffic roads and expressways would be good candidates for installations. With the smart-grid and remote control capabilities, there would be less need to put our crews in harm’s way.”

Money—where to get it, how best to spend it, where to find more—is a topic very much on people’s minds, whether their needs are personal or strictly business. Utilities face those same questions, but unlike individuals and other organizations, they can ask Energy Services for guidance. A large part of our service is networking with state and federal agencies, trade associations and nonprofits to track down funding opportunities Western customers can use to launch programs or upgrade facilities.

Makeover time
Take the city of White, S.D., for example, and its 40-year-old community center. “We would like to get rid of the paneling, remodel the kitchen and reconfigure the office space,” explained Finance Officer Melanie Haber.

The city of White, S.D., is investigating grants available for upgrading its community center. Municipalities have many options for funding energy-efficiency retrofits to public buildings, but sometimes it is necessary to think outside the box. (Photo by the City of White, S.D.)

She added that the fluorescent lighting throughout the building is poor quality, especially in the big hall where most events are held. Replacing the five furnaces heating the multi-use facility with one central system and zoned controls could help to reduce operating costs and improve comfort. In short, “It needs a complete update, inside and out,” Haber admitted.

Only the beginning
The community center project is still in the planning stages, so Haber has only done preliminary research into funding sources. “We can’t apply for a grant until we have specifics about what we want to do to the building and what that is likely to cost,” she said.

Heartland Consumers Power District, the city’s wholesale cooperative, offers incentives for commercial lighting upgrades, heating and cooling system retrofits and efficient appliances. The systems that would be installed in the community center would be subject to Heartland’s as-yet-unpublished 2014 rebate menu, however.

The South Dakota Office of Economic Development might also be a source of low-interest loans for the project, Haber noted. “We have reached out to the regional office, but again, we don’t know what programs the project might be eligible for until we have more details,” she said.

No stone unturned
In addition to investigating loan and rebate programs, Haber also contacted Marsha Thomas, Western’s Upper Great Plains Energy Services representative for more ideas about potential funding sources. Thomas, in turn, decided to “crowdsource” Haber’s question with other Energy Services staff. “The great thing about having an Energy Services representative in each region is that we all bring a different background and perspective to the job,” said Thomas. “Any one of us can tap that collective experience to find answers for our customers.”

Energy Services Manager Ron Horstman observed that Haber is off to a solid start in her search for funding. “Check with your generation and transmission provider first,” he advised. “They understand your load in the context of the community and local climate, and they have a vested interest in helping their members manage their demand.”

Here are some other recommendations municipalities might consider for securing funding:

Assemble a list of stakeholders on the project and brainstorm with them to come up with a list of potential sources. Your colleagues and neighbors may surprise you with their resourcefulness and innovative thinking.

Don’t stop with your state’s economic development office. Check with the state energy office, parks and recreation department, education department and public health office to learn about their grant opportunities. Projects that address the goals of more than one state (or federal) agency often have a better chance of receiving funding.

County governments also offer economic development grants or loans, or serve as pass-through agencies for federal monies. Private businesses and nonprofit agencies frequently collaborate with counties to set up revolving loan funds for projects that benefit communities.

Inquire with your local and state chamber of commerce about grant opportunities they may offer or be aware of.

Hire a grant writer. This professional knows how to speak the language of funders and how to highlight the facets of the project that appeal to them. Grant writers who specialize in a specific field or type of project also keep up with the funding agencies and opportunities pertaining to their specialties.

Seek donations from individuals or service clubs in the community. Supporting energy efficiency in public buildings today can help keep taxes and fees down tomorrow. Donating also gives residents ownership in the success of the project and a feeling of civic pride.

Ultimately, more projects are hobbled by a lack of imagination than a lack of funding, Horstman insisted. “Make the effort to think outside the box, and you may discover financing options that would never have occurred to you otherwise,” he said. “You may even improve on the efficiency and functionality of your original plan if you stay open to creative thinking.”

Good luck!
Energy Services wishes White, S.D., and all our customers the best of luck in developing the modern, efficient facilities their communities need to remain vibrant and healthy. More than that, we are always sharing ideas to accomplish that goal through our website, blog and our representatives.

Most of all, we urge you, our customers, to share your experiences with each other. Contact your peers directly through Energy Services Bulletin stories, send them to the editor or give us your two cents’ worth in the comments below.